MEMORIA Y ESTADOS FINANCIEROS

ANNUAL REPORT /2020/

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> MEMORIA Y ESTADOS FINANCIEROS/ÍNDICE

Members of the Board of Directors, Statutory Audit Committee and External Auditor. Consolidated Financial Highlights: Variations

Miembros del Directorio, de la Comisión Fiscalizadora y Auditor Externo. Datos consolidados relevantes: Su evolución

Contexto macroeconómico.

Premisas de gestión, lineamientos estratégicos, política comercial.

Perspectivas.

Información adicional requerida por el art. 60, inciso c) de la Ley 26.831.

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Informe de Gobierno Corporativo.

Situación �nanciera.

Propuesta para capitalizaciones, ajustes monetarios y otros conceptos.

Vencimiento de mandatos.

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> ANNUAL REPORT/ TABLE OF CONTENTS

Macroeconomic context.

Business policies, strategic guidelines and projected business policy.

Prospects.

Additional information required by section 60(c) of Law No. 26,831.

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Corporate governance report.

Financial Position.

Proposal with regard to capitalizations, monetary adjustments and other items.

Expiry of terms of o�ce

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Estados �nancieros al 31 de marzo de 2020Financial statements as of March 31, 2020

toneladas (10,7%) sin injerencia en la importación de materia prima.

Adicionalmente, durante el presente ejercicio la Sociedad volvió a la molienda de girasol (adaptando una de sus líneas productivas tal como se describe en el acápite Inversiones en el complejo San Lorenzo más abajo) totalizando las 63 mil toneladas y sentando las bases para seguir creciendo en la comercialización de aceite y pellet de girasol. El maíz, por otra parte, capitalizó cada lluvia en el momento indicado de su ciclo, tanto para las siembras tempranas como para las tardías, arrojando como resultado la cosecha más grande de la historia argentina. Con algo menos de 53 millones de toneladas y fuerte competencia de Brasil, la exportación alcanzó el mayor volumen comercializado por el país, siendo algo más de 37 millones de toneladas. Con un importante aumento del área sembrada, el trigo también alcanzó un récord histórico con 18,5 millones de toneladas, y nuevamente capitalizando todas las oportunidades comerciales a nivel internacional que se presentaron para el país.

En ese sentido, la activa participación en los distintos canales de originación y la agilidad de respuesta logística e industrial, permitió a la Sociedad, en el contexto macroeconómico descripto, aún sin posibilidad de participar de la importación de materia prima y con una estructura impositiva desfavorable para la exportación de productos con valor agregado, acompañar los niveles de molienda nacional, incrementando levemente su participación sobre la industrialización de soja total y cereales, logrando la originación de 6,5 millones de toneladas, 4,4 millones de oleaginosas y 2,1 millones de cereales.

Comercialización de productos industriales.En el desa�ante contexto antes descripto, la Sociedad logró exportar 3.000.000 de toneladas de harina de soja y rati�car su condición de proveedor con�able de escala relevante, sosteniéndose entre los líderes mundiales tanto de harina como de cáscara de soja.

En lo que respecta al aceite crudo de soja, la Sociedad colocó su producción en 15 diferentes países, además de proveer a plantas propias y de terceros para la producción de biodiesel. La República de la India volvió a ser el destino más importante, concentrando un 25% del total de la producción de aceite de la empresa.

Comercialización de cereales.El negocio de cereales expresó su máximo potencial, combinando la maximización del uso de los activos con cosechas de maíz y trigo en sus máximos históricos. Esto permitió alcanzar un récord en volumen de exportaciones de granos, y consolidarse entre los participantes más importantes de la exportación granaria argentina. Además, se pudo a�anzar la función de ser proveedores de clientes independientes de escala relevante en porcentajes muy similares a los alcanzados en la exportación de harina de soja.

De esta manera, la Sociedad terminó el ejercicio

exportando 2,1 millones de toneladas de granos, el mayor volumen desde el comienzo de la operación y logrando crecer un 90% respecto del año anterior. Esto consolida a la Sociedad como el 8° exportador argentino de cereales.

Biodiesel.Durante el año 2019 el único mercado de exportación con acceso fue el europeo. Los mercados de Estados Unidos y de Perú mantienen alícuotas de importación para el biodiesel argentino que hacen antieconómica la exportación a dichos destinos. La �rma y puesta en vigencia de un acuerdo con la Comisión Europea a �nes de febrero permitió colocar en dicho mercado 1 millón de toneladas distribuidas entre 8 exportadores. Este fue el primer año que se pudo llevar a cabo dicho acuerdo permitiendo ingresar a la Unión Europea sin gravamen de aranceles anti-subsidio / anti-dumping.

Respecto al mercado local, el volumen total se mantuvo sin cambios en comparación al período anterior. Sin embargo, la adjudicación de cupos a las empresas medianas disminuyó, al reasignar la Secretaría de Energía una mayor cantidad a otras empresas que presentaron sendos recursos de amparo en reclamo de un mayor cupo, en base a su historial de ventas.

Mercado Local.En un año de incertidumbre e inestabilidad y con escaso acceso al �nanciamiento, se continuó con el proceso de concentrar operaciones en clientes con�ables, manteniendo los plazos de cobro y los márgenes. Para tal �n se concentraron los esfuerzos en el análisis crediticio, en la gestión de cobranzas y, con el afán de minimizar el impacto devaluatorio, se incrementaron fuertemente los negocios nominados en dólares estadounidenses.

Los volúmenes de sólidos se mantuvieron similares al año anterior (incorporando el pellet de girasol, que se comercializó en un 85% en el mercado local), mientras que los líquidos (excluyendo el biodiesel) se incrementaron aproximadamente un 25% respecto del ejercicio anterior. Más allá del aceite crudo de soja se incorporaron ventas de aceite neutro de soja y aceite crudo de girasol.

Inversiones en el complejo San Lorenzo.Durante el presente ejercicio se desplegó todo el potencial del complejo, en gran parte producto de las inversiones realizadas en el trienio 2016/2018, marcando el récord histórico de actividad: 6,5 millones de toneladas entre molienda de soja y girasol más la exportación de maíz y trigo.

El año también fue marcado por las modi�caciones que se ejecutaron sobre la línea de molienda N° 1, la más antigua del complejo, que fue acondicionada para moler girasol, molienda que se materializó de forma exitosa entre los meses de diciembre de 2019 y marzo de 2020, alcanzando los niveles de calidad y productividad esperados.

Es así como la campaña comercial 2019/2020 la planta recibió en forma conjunta cuatro tipos de grano diferentes, moliendo soja y girasol en simultáneo, y

almacenando 9 productos distintos sobre el complejo, lo cual era impensado para una planta que nació con una concepción netamente sojera. Por último, en marzo de 2020 se terminaron las obras de ampliación de la capacidad de secado de harina, motivadas esencialmente para combatir la natural caída de la proteína que sufre el poroto de soja y cuyos resultados se podrán medir para la campaña comercial entrante.

3. PERSPECTIVAS.

El comienzo del año 2020 coincide prácticamente con la aparición de la pandemia del Covid-19.

A nivel global y hasta el día de la fecha, la Organización Mundial de la Salud (OMS) estima que hay 6 millones de personas que fueron infectadas y alrededor de 400.000 muertos a causa de la enfermedad. Un contexto inédito para el mundo entero, en el que se calcula que la mitad de la población mundial se encuentra en aislamiento social con el solo objetivo de minimizar los contagios.

China, origen de la pandemia, ha retornado a una normalidad controlada en el plazo de 5 meses desde el comienzo de la enfermedad infectocontagiosa. Sin embargo, no está del todo claro de qué manera han manejado el curso y la salida de la emergencia, lo que hace que los tiempos no sean extrapolables a otros países.

Europa, Estados Unidos y Brasil son las regiones más golpeadas por esta enfermedad, concentrando más de un 70% de los casos con�rmados.

La economía global ha sufrido notablemente y lo seguirá haciendo. La Organización Mundial del Comercio (OMC) estima que el volumen del intercambio se reducirá entre un 13% y un 32%, según sus visiones más optimistas y pesimistas, respectivamente. Los bienes durables sufrirán en mayor proporción que los no durables. De la misma manera, la OMC proyecta un fuerte rebote para el año 2021 del orden del 24%.

El organismo internacional OCDE (Organización para la Cooperación Económica y el Desarrollo) estima en 2% la posible caída del PBI mundial para el corriente año, para ubicarse en un dramático 0,9% de crecimiento durante el año 2021. Vemos entonces que los efectos de esta crisis pueden llegar a ser comparables con la Gran Depresión del año 1930.

En Argentina, muchos sectores están viendo restringida su normal operación, sobre todo las pequeñas y medianas empresas no de�nidas como esenciales por el Gobierno nacional, quien estableció un Aislamiento Social Preventivo y Obligatorio desde el día 20 de marzo.

Las perspectivas de in�ación y competitividad del peso argentino estarán signadas por el acuerdo de reestructuración que el Gobierno logre con los tenedores de deuda bajo ley extranjera y el efecto de la emisión sin respaldo para hacer frente a los gastos que está generando la pandemia.

A pesar de las proyecciones de caída del PBI del orden de 3,5% -a cargo de varias consultoras privadas contratadas por el propio Gobierno- el sector agroexportador mantiene las perspectivas de cosecha en el orden de 50 millones de toneladas para la soja y un número similar para el maíz.

Aún bajo este escenario de incertidumbre, la Sociedad se encuentra estratégicamente posicionada y �nancieramente sólida para arbitrar la cosecha local en mercados internacionales, que por el momento se muestran cautos pero necesitados de materias primas.

4. INFORMACIÓN ADICIONAL REQUERIDA POR EL ART. 60, INCISO C) DE LA LEY 26.831.

Modalidades de Remuneración del Directorio y la Política de Remuneración de los Cuadros GerencialesEl estatuto social de la Sociedad no prevé la remuneración de los miembros del Directorio ni los miembros de la Comisión Fiscalizadora.

No obstante, la remuneración del Directorio es �jada y aprobada por la Asamblea de Accionistas, teniendo en cuenta el límite establecido en el art. 261 de la Ley General de Sociedades y las normas pertinentes de la Comisión Nacional de Valores.

En cuanto a la política de remuneración de los cuadros gerenciales, la Sociedad ha establecido un esquema de remuneración compuesto por una parte �ja y una variable. La remuneración �ja está relacionada con el nivel de responsabilidad requerido para el puesto y su competitividad respecto del mercado; la remuneración variable está asociada con los objetivos �jados al comienzo del ejercicio y el grado de cumplimiento de ellos al cierre económico. La Sociedad no tiene establecido planes de opciones para su personal.

Toma de decisiones y Control internoEl órgano de gobierno de la Sociedad es la Asamblea de Accionistas en la que cada acción ordinaria clase A con�ere derecho a cinco votos y cada acción ordinaria clase B con�ere derecho a un voto. En todos los casos, para la elección de los Síndicos titulares y suplentes y los supuestos del último apartado del artículo 244 de la Ley de Sociedades Comerciales, las acciones ordinarias, inclusive las de voto múltiple, sólo tendrán derecho a un voto por cada acción.

De acuerdo al Artículo 12 del Estatuto Social de Molinos Agro, la administración de la Sociedad está a cargo de un Directorio compuesto del número de miembros que �je la asamblea entre un mínimo de tres y un máximo de once, quienes serán elegidos por el término de dos ejercicios y que se renuevan por mitades en cada uno de ellos, pudiendo designarse suplentes en igual o menor número que los titulares y por el mismo plazo a �n de llenar las vacantes que se produjeren, en el orden de su elección.

El Directorio funcionará con la mayoría de sus miembros presentes en forma física o comunicados entre sí a través

To the shareholders ofMOLINOS AGRO S.A.:

In compliance with current legal and by-law requirements, the Board of Directors of Molinos Agro S.A. (hereinafter, “Molinos Agro” or the “Company”) is pleased to submit for your consideration this Letter, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Consolidated Statement of Cash Flows, the Notes to the Consolidated Financial Statements, the Separate Financial Statements, the Notes to the Separate Financial Statements, the Auditor’s Report and the Statutory Audit Committee’s Report on the Financial Statements for the �scal year No. 5 ended March 31, 2020, and the Summary of Events required by CNV (Argentine Securities Commission) regulations as of the same date.

Molinos Agro carried about ARS 4.20 billion in pro�t before taxes (3.3% over sales revenues), an about ARS 1.25 billion income tax credit, and about ARS 2.95 billion net pro�t, thus showing the good performance of its exports of grains and added-value products from oil seed crushing.

1. MACROECONOMIC CONTEXT.

In 2019, the global economy experienced the lowest growth in the decade (only 2.9%), below IMF initial expectations. This decline was the result of lengthy trade disputes and the unexpected negative performance of some emerging economies, particularly India, but also Mexico and South Africa.

In turn, the sporadic favorable news on US-China trade negotiations and the reduced fear that the United Kingdom may leave the European Union without reaching an agreement exerted a positive e�ect on growth.

In the agroeconomic context, the 2019/20 campaign (related to the 2018/19 harvest) started with excellent prospects as to grain and oils, and accounted for the second largest combined harvests at global level. The prices of the large global supply of grains �uctuated due to the twists and turns of US-China trade negotiations.

In addition, the soybean �our and vegetable protein market was severely a�ected by the outbreak of the African swine fever, especially in China and in several Southeast Asian countries. Consequently, animal-based production dropped in the a�ected regions and increased in the countries that produce and export di�erent types of meat.

In October 2019, U.S.-China Phase 1 trade deal was signed, which allowed for a partial recovery of the prices of agricultural commodities within a low price channel. The deal included China’s purchase preference for US agricultural products over products from other countries; however, negotiations with China during the rest of the

season were conducted mostly outside the Unites States.

Brazil’s sowing under unfavorable climate conditions, which improved during most part of the production cycle, allowed for the second consecutive record harvest of soybean, gathering in almost 120 million tons. The excellent condition of the reused lots of corn, bene�tted by late rains, grew by almost 20 million tons with respect to the prior cycle, reaching an unprecedented 101 million-ton production.

The Argentine macroeconomic context was highly in�uenced by the di�erent electoral instances held in 2019. After the primary elections held in August, the victory of the challenger candidate brought about increase uncertainty and foreign exchange pressures. From August until the presidential elections held in October and after the new government took o�ce, the exchange rate upward trend continued. The Argentine peso su�ered a 60% depreciation between January 1 and December 31, 2019, and reached the highest in�ation level in the past 28 years, amounting to 53.8% according to the INDEC (Argentine Institute of Statistics and Censuses). GDP fell by 2.2% with respect to the prior year, led by a decline in the manufacturing activity, trade and �nancial intermediation, but mainly o�set by a major improvement in agricultural activities.

In agricultural production, crop development was as expected almost in the entire territory. Rains, though erratic in some regions, contributed to a major recovery of soybean crop after it was a�ected in the prior season by one of the worst draughts in history. Soybean production for 2018/19 amounted to 53.3 million tons, accounting for a 52% increase or 18 million tons more with respect to the previous season hard-hit by the draught.

Corn, with its two clearly de�ned harvest dates, took advantage of the rains and temperature during the cycle. It reached an output of almost 53 million tons, up by 16 million tons with respect to the previous harvest, thus achieving a production record. Producer’s sales and local prices re�ected during most season the ups and downs of the trade con�ict that prevailed until Phase I of the deal was signed in October.

Due to the heightened international certainty and before the administration of Alberto Fernández took o�ce, producers accelerated the sales of grains from the 2018/19 season and anticipated sales from 2019/20 season in fear of a new increase in export duties. This rise was �nally con�rmed on December 14 through Presidential Decree No. 37/2019. Hence, export duties returned to the previous system; i.e., a �xed rate is levied on the index price of each product, removing the exchange rate in the equation formula. This change with respect to the prior system increased soybean and its crushing byproducts, corn and wheat, among others, by 5.7%.

Finally, during the year, the prior-year �xed rate for export duties between unprocessed grains and products derived from an industrial process such as those exported by the Company (oil, �our, shell and biodiesel) was maintained; therefore, more duties are paid per equivalent ton of

products than for unprocessed grains. This promoted the primarization of the economy and consequently the export of products with no added value, which, for soybean amounted to 10 million tons (that is, 6 million tons more than that exported the prior year).

2. BUSINESS POLICIES, STRATEGIC GUIDELINES AND PROJECTED BUSINESS POLICY

With a clear long-term strategy and the main goal of becoming an international supplier of products arising from soybean and sun�ower crushing, and export of cereals for large-scale independent customers, Molinos Agro strengthens its position as a key player in Argentina’s agricultural and export business by selling products with added value, strengthening business platforms and working hard in consolidating the productive e�ciency of the plant located in San Lorenzo, Province of Santa Fe, and in the San Benito port.

Origination and crushing.With a slight decrease in the sowed area but very good climate during crop development, soybean production amounted to 53.3 million tons. The y.o.y fall in the protein content of grain fostered the import of soybean seeds of several origins, standing at almost 4 million tons earmarked for crushing. Despite the increase in the availability of raw materials but due to the rise in unprocessed grain exports, the industrialized volume stood above the average for the past 5 seasons, slightly over 41 million tons, from which the Company participated with a crushing volume of 4.4 million tons (10.7%) with no impact on the import of raw materials.

In addition, during the year, the Company returned to sun�ower crushing (adjusting one of its production lines as described in section “Investments in San Lorenzo complex” below), which amounted to 63,000 tons and laid the foundations for growth in trading sun�ower oil and pellet. Corn, on the other hand, capitalized on every rain at the right time of its cycle, both for early and late sowing, and yielded the highest harvest in Argentine history. With slightly less than 53 million tons and the �erce competition in Brazil, exports reached the highest volume traded in Argentina (moderately over 37 million tons). With a major increase in the area sowed, wheat also hit a record at 18.5 million tons, and also capitalized on international trade opportunities for Argentina.

In this regard, Molinos Agro's active participation in the various origination channels and its speedy logistics and industrial response placed the Company, in the macroeconomic context described and with no possibility of participating in the import of raw materials and with an unfavorable tax structure for exporting high added value products, within high domestic crushing levels, slightly increasing its share in the total soybean and cereal industrialization sector, originating 6.5 million

tons (4.4 million oil seeds and 2.1 million cereals).

Industrial product trade.In the aforementioned challenging context, the Company managed to export 3 million tons of soybean �our and ratify its condition as reliable large-scale supplier, maintaining its global leadership in �our and soybean shell.

Moreover, the Company placed its production of soybean crude oil in 15 di�erent countries, in addition to catering for own and third-party plants to produce biodiesel. India became the most important destination again, concentrating 25% of the Company’s total oil production.

Cereal trade.The cereal business showed its maximum potential, combining the maximization of the use of assets with record corn and wheat harvests. Thus, the Company managed to reach a historical volume in the export of grains, and consolidated itself as the top grain Argentine exporter. It also managed to consolidate itself as a supplier for large-scale independent customers in percentages very similar to those reached in the export of soybean �our.

Thus, the Company exported 2.1 million tons of grains, the highest volume since it began operating, up by 90% with respect to the previous year. This placed the Company as the eighth largest Argentine cereal exporter.

Biodiesel.In 2019, the only export market with access was the European market. The US and Peruvian markets set import duties on Argentine biodiesel that render export to such countries economically impractical. By virtue of an agreement signed and executed with the European Commission by the end of February, a total of 1 million tons were placed in the EU market, distributed between 8 exporters. This was the �rst year that such agreement was performed by virtue of which access to the European Union was granted without being subject to anti-subsidy and anti-dumping duties.

As to the local market, the total volume remained unchanged as compared to the previous period. However, the allocation of quotas to medium-sized companies was reduced since the Department of Energy assigned larger volumes to other companies which �led an appeal for protection of constitutional rights claiming a larger quota based on their sales history.

Local market.In a year characterized by uncertainty and instability with limited access to �nancing, the Company continued concentrating transactions in reliable customers, controlling collection terms and margins. To such end, the Company focused on credit analysis, collection management and, aimed at minimizing the impact of depreciation, the businesses stated in US dollars were drastically increased.

Solid volumes were similar to those reached the precious year (also sun�ower pellets, from which 85% were traded on the local market), whereas liquids (excluding

biodiesel) rose by about 25% with respect to the previous year. In addition to soybean crude oil, the Company sold soybean crude oil and sun�ower crude oil.

Investments in the San Lorenzo complexDuring this year, the complex was used to its maximum, mainly due to the investments made from 2016 to 2018, hitting an unprecedented record: 6.5 million tons between soybean and sun�ower crushing, and the exports of corn and wheat.

The year was also marked by the changes in crushing line No. 1, the oldest in the complex, that was refurbished to crush sun�ower. This crushing was successfully carried out between December 2019 and March 2020, reaching the expected quality and productivity levels.

Thus, in the 2019/2020 season, the plant received four types of grains, and crushed soybean and sun�ower at the same time. It also stored 9 products in the complex, which was unexpected for a plant that was born as a merely soybean company. Finally, in March 2020, the works to expand �our drying capacity were �nished, fueled mainly by the need to combat the natural decline in the protein content of soybeans, which results may be measured in the next commercial harvest.

3. PROSPECTS

The beginning of 2020 practically coincides with the outbreak of the COVID-19 pandemic.

At global level and to date, the WHO estimates that 6 million people were infected and about 400,000 people died from this outbreak. This is an unprecedented context across the world, and half of the population is adopting social lockdown policies to contain spread of the disease.

China, the country of origin of the outbreak, returned to a controlled normalcy within 5 months from the beginning of the contagious disease. However, it is unclear how they have handled the disease and the emergency, so the time it took them to contain the disease cannot be extrapolated to other countries.

Europe, the US and Brazil are the regions most a�ected by this disease, concentrating more than 70% of the con�rmed cases.

The global economy has su�ered greatly and will continue to do so. The WTO estimates that the exchange volume will be reduced between 13% and 32%, based on their most optimistic and pessimistic scenarios, respectively. Durable goods will su�er in a higher proportion than nondurable goods. Also, the WTO estimates a strong rebound in 2021 of about 24%.

The OECD estimates that the potential decline in global GDP for the present year stands at 2%, and that growth will amount to a dramatic 0.9% in 2021. The e�ects of this crisis may be comparable to the Great Depression during the 1930s.

In Argentina, many sectors cannot operate, especially SMEs that are not de�ned as essential by the Argentine government, which imposed a mandatory and preventive lockdown as from March 20.

In�ation prospects and the competitiveness of the Argentine peso will depend on the restructuring deal that the Government manages to sign with debt holders under foreign law and the e�ect of unsecured issuance to face the expenses incurred by the pandemic.

Despite the estimated 3.5% decline in GDP, according to several private consulting companies hired by the Government itself, harvest expectations for the agro-exporting sector remain at 50 million tons for soybean and a similar number for corn.

Despite this uncertainty, the Company is strategically positioned and �nancially solvent to place a good local harvest on international markets, which are currently cautious but also eager for raw materials.

4. ADDITIONAL INFORMATION REQUIRED BY SECTION 60(C) OF LAW NO. 26,831

Forms of compensation to the Board of Directors and compensation policy applicable to ManagementThe Company’s bylaws do not set forth the compensation

applicable to the members of the Board or Statutory Audit Committee.

However, compensation to the Board of Directors is established and approved by the Shareholders’ Meeting within the limit set by section 261, Argentine General Business Associations Law and the relevant CNV regulations.

As to the compensation policy applicable to management, the Company established a compensation system made up of a �xed and a variable component. Fixed compensation is related to the level of responsibility required for the position and its competitiveness with respect to the market; variable compensation is related to the goals set at the beginning of the �scal year and the degree of progress achieved as a result of their management as of year-end. The Company has no stock option plans in place for its personnel.

Decision-making and internal controlThe Company’s governance body is the Shareholders’ Meeting; each class “A” share of common stock grants the right to �ve votes and each class “B” share of common stock grants the right to one vote. In any case, when electing statutory auditors and alternate statutory auditors and when dealing with the issues described in the last part of section 244, Argentine Business Associations Law, the shares of common stock, including multiple-vote shares, will only be entitled to one vote per share.

According to section 12 of Molinos Agro’s bylaws, the Company’s management is in charge of a Board of Directors made up of a number of at least three and a maximum of twelve regular members to be �xed by the Shareholders' Meeting, who will hold their o�ces for two �scal years to be renewed by halves each �scal year. It will be possible to appoint alternate Board members in the same number and for the same term as Board members to �ll in any vacancies, in the order of their choice.

The Board of Directors will operate with most of its

members physically present or communicated through any other simultaneous communication means for sound and images, and decisions are made by a majority of votes of the attendees, including remote participants.

At present, the Board of Directors is made up of six directors and two alternate directors, who are named at the beginning of this Letter to the Shareholders.

Molinos Agro’s Audit Committee is made up by the following directors: (i) Juan Manuel Forn, (ii) Oscar Miguel Castro and (iii) Gabriel Casella, appointed as of July 3, 2019.

In addition, Molinos Agro has systems and internal procedures in place, which were designed to follow up on businesses, thus preventing and detecting departures.

The Internal Audit area depends on Molinos Agro's Chairman and reports to the Audit Committee. Its mission is to minimize the potential impact of operating risks on the achievement of the shareholders' goals and it supports the di�erent areas by implementing and optimizing several controls and procedures.

5. CORPORATE GOVERNANCE REPORT

As Exhibit I, the Company includes a Report on the Level of Compliance with the Corporate Governance Code for the �scal year ended March 31, 2020, as established by Title IV “Periodic information system” of CNV (Argentine Securities Commission) regulations (as amended in 2013) approved by CNV General Resolution 622/2013 as amended.

6. FINANCIAL POSITION

Pro�t for the yearThe Company reached a record both in industrial processing volumes and tons exported, as well as in number of sales, operating pro�t and net pro�t due to the engagement team’s professionalism, prudent risk-taking and the trust placed by shareholders that provided �nancing to the major investments made, which made it possible to reach these operating and e�ciency levels, and which were earmarked 56% of the net revenues earned over the past three years. Even though the Company hit record pro�ts, it only accounts for 3.7% of revenues, which, although reasonable for the activity, shows the need to continue focusing on e�ciency and prudent-risk management since the activity is highly sensitive to the slight changes in variables that may signi�cantly a�ect the result of operations and the possibility of making new investments to continue with the industrial activities that add value to Argentina’s agricultural production.

The Company earned about USD 2 billion, which entailed a 15% increase with respect to the prior year. This is the consequence of trading 6.6 million tons, such as cereals, with 2.1 million tons, the highest volume traded since the Company began operating. The volume of processed

soybean went up by 600,000 tons after the drought experienced last year, partly o�set by the decline in international prices of crushing byproducts.

Gross pro�t amounted to USD 96 million and accounted for 4.8% of sales for the year. This meant a USD 25 million increase with respect to the prior year, in which the gross share stood at about 4%. Pro�ts for the third quarter stood out since grains sold by producers accelerated.

EBTDA, the main indicator of the Company’s management, stood at USD 74.9 million and USD 44.8 million for the years ended March 31, 2020 and 2019, respectively. This is a drastic improvement in this indicator, which rose from 2,6% to 3.8% this year. The Company’s pro�ts from �nancial management rose by USD 10 million with respect to the previous year. Operating pro�t amounted to USD 56 million, as compared to the USD 37.8 million earned in March 31, 2019.

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ESTADOS FINANCIEROS AL 31 DE MARZO / F INANCIAL STATEMENTS AS OF MARCH 31 /2018/

> NÓMINA DE LOS INTEGRANTES DE LOS ÓRGANOS DE ADMINISTRACIÓN Y FISCALIZACIÓN DE MOLINOS AGRO S.A.

/ MEMBERS OF THE MANAGEMENT AND AUDIT BODIES OF MOLINOS AGRO S.A.

toneladas (10,7%) sin injerencia en la importación de materia prima.

Adicionalmente, durante el presente ejercicio la Sociedad volvió a la molienda de girasol (adaptando una de sus líneas productivas tal como se describe en el acápite Inversiones en el complejo San Lorenzo más abajo) totalizando las 63 mil toneladas y sentando las bases para seguir creciendo en la comercialización de aceite y pellet de girasol. El maíz, por otra parte, capitalizó cada lluvia en el momento indicado de su ciclo, tanto para las siembras tempranas como para las tardías, arrojando como resultado la cosecha más grande de la historia argentina. Con algo menos de 53 millones de toneladas y fuerte competencia de Brasil, la exportación alcanzó el mayor volumen comercializado por el país, siendo algo más de 37 millones de toneladas. Con un importante aumento del área sembrada, el trigo también alcanzó un récord histórico con 18,5 millones de toneladas, y nuevamente capitalizando todas las oportunidades comerciales a nivel internacional que se presentaron para el país.

En ese sentido, la activa participación en los distintos canales de originación y la agilidad de respuesta logística e industrial, permitió a la Sociedad, en el contexto macroeconómico descripto, aún sin posibilidad de participar de la importación de materia prima y con una estructura impositiva desfavorable para la exportación de productos con valor agregado, acompañar los niveles de molienda nacional, incrementando levemente su participación sobre la industrialización de soja total y cereales, logrando la originación de 6,5 millones de toneladas, 4,4 millones de oleaginosas y 2,1 millones de cereales.

Comercialización de productos industriales.En el desa�ante contexto antes descripto, la Sociedad logró exportar 3.000.000 de toneladas de harina de soja y rati�car su condición de proveedor con�able de escala relevante, sosteniéndose entre los líderes mundiales tanto de harina como de cáscara de soja.

En lo que respecta al aceite crudo de soja, la Sociedad colocó su producción en 15 diferentes países, además de proveer a plantas propias y de terceros para la producción de biodiesel. La República de la India volvió a ser el destino más importante, concentrando un 25% del total de la producción de aceite de la empresa.

Comercialización de cereales.El negocio de cereales expresó su máximo potencial, combinando la maximización del uso de los activos con cosechas de maíz y trigo en sus máximos históricos. Esto permitió alcanzar un récord en volumen de exportaciones de granos, y consolidarse entre los participantes más importantes de la exportación granaria argentina. Además, se pudo a�anzar la función de ser proveedores de clientes independientes de escala relevante en porcentajes muy similares a los alcanzados en la exportación de harina de soja.

De esta manera, la Sociedad terminó el ejercicio

exportando 2,1 millones de toneladas de granos, el mayor volumen desde el comienzo de la operación y logrando crecer un 90% respecto del año anterior. Esto consolida a la Sociedad como el 8° exportador argentino de cereales.

Biodiesel.Durante el año 2019 el único mercado de exportación con acceso fue el europeo. Los mercados de Estados Unidos y de Perú mantienen alícuotas de importación para el biodiesel argentino que hacen antieconómica la exportación a dichos destinos. La �rma y puesta en vigencia de un acuerdo con la Comisión Europea a �nes de febrero permitió colocar en dicho mercado 1 millón de toneladas distribuidas entre 8 exportadores. Este fue el primer año que se pudo llevar a cabo dicho acuerdo permitiendo ingresar a la Unión Europea sin gravamen de aranceles anti-subsidio / anti-dumping.

Respecto al mercado local, el volumen total se mantuvo sin cambios en comparación al período anterior. Sin embargo, la adjudicación de cupos a las empresas medianas disminuyó, al reasignar la Secretaría de Energía una mayor cantidad a otras empresas que presentaron sendos recursos de amparo en reclamo de un mayor cupo, en base a su historial de ventas.

Mercado Local.En un año de incertidumbre e inestabilidad y con escaso acceso al �nanciamiento, se continuó con el proceso de concentrar operaciones en clientes con�ables, manteniendo los plazos de cobro y los márgenes. Para tal �n se concentraron los esfuerzos en el análisis crediticio, en la gestión de cobranzas y, con el afán de minimizar el impacto devaluatorio, se incrementaron fuertemente los negocios nominados en dólares estadounidenses.

Los volúmenes de sólidos se mantuvieron similares al año anterior (incorporando el pellet de girasol, que se comercializó en un 85% en el mercado local), mientras que los líquidos (excluyendo el biodiesel) se incrementaron aproximadamente un 25% respecto del ejercicio anterior. Más allá del aceite crudo de soja se incorporaron ventas de aceite neutro de soja y aceite crudo de girasol.

Inversiones en el complejo San Lorenzo.Durante el presente ejercicio se desplegó todo el potencial del complejo, en gran parte producto de las inversiones realizadas en el trienio 2016/2018, marcando el récord histórico de actividad: 6,5 millones de toneladas entre molienda de soja y girasol más la exportación de maíz y trigo.

El año también fue marcado por las modi�caciones que se ejecutaron sobre la línea de molienda N° 1, la más antigua del complejo, que fue acondicionada para moler girasol, molienda que se materializó de forma exitosa entre los meses de diciembre de 2019 y marzo de 2020, alcanzando los niveles de calidad y productividad esperados.

Es así como la campaña comercial 2019/2020 la planta recibió en forma conjunta cuatro tipos de grano diferentes, moliendo soja y girasol en simultáneo, y

almacenando 9 productos distintos sobre el complejo, lo cual era impensado para una planta que nació con una concepción netamente sojera. Por último, en marzo de 2020 se terminaron las obras de ampliación de la capacidad de secado de harina, motivadas esencialmente para combatir la natural caída de la proteína que sufre el poroto de soja y cuyos resultados se podrán medir para la campaña comercial entrante.

3. PERSPECTIVAS.

El comienzo del año 2020 coincide prácticamente con la aparición de la pandemia del Covid-19.

A nivel global y hasta el día de la fecha, la Organización Mundial de la Salud (OMS) estima que hay 6 millones de personas que fueron infectadas y alrededor de 400.000 muertos a causa de la enfermedad. Un contexto inédito para el mundo entero, en el que se calcula que la mitad de la población mundial se encuentra en aislamiento social con el solo objetivo de minimizar los contagios.

China, origen de la pandemia, ha retornado a una normalidad controlada en el plazo de 5 meses desde el comienzo de la enfermedad infectocontagiosa. Sin embargo, no está del todo claro de qué manera han manejado el curso y la salida de la emergencia, lo que hace que los tiempos no sean extrapolables a otros países.

Europa, Estados Unidos y Brasil son las regiones más golpeadas por esta enfermedad, concentrando más de un 70% de los casos con�rmados.

La economía global ha sufrido notablemente y lo seguirá haciendo. La Organización Mundial del Comercio (OMC) estima que el volumen del intercambio se reducirá entre un 13% y un 32%, según sus visiones más optimistas y pesimistas, respectivamente. Los bienes durables sufrirán en mayor proporción que los no durables. De la misma manera, la OMC proyecta un fuerte rebote para el año 2021 del orden del 24%.

El organismo internacional OCDE (Organización para la Cooperación Económica y el Desarrollo) estima en 2% la posible caída del PBI mundial para el corriente año, para ubicarse en un dramático 0,9% de crecimiento durante el año 2021. Vemos entonces que los efectos de esta crisis pueden llegar a ser comparables con la Gran Depresión del año 1930.

En Argentina, muchos sectores están viendo restringida su normal operación, sobre todo las pequeñas y medianas empresas no de�nidas como esenciales por el Gobierno nacional, quien estableció un Aislamiento Social Preventivo y Obligatorio desde el día 20 de marzo.

Las perspectivas de in�ación y competitividad del peso argentino estarán signadas por el acuerdo de reestructuración que el Gobierno logre con los tenedores de deuda bajo ley extranjera y el efecto de la emisión sin respaldo para hacer frente a los gastos que está generando la pandemia.

A pesar de las proyecciones de caída del PBI del orden de 3,5% -a cargo de varias consultoras privadas contratadas por el propio Gobierno- el sector agroexportador mantiene las perspectivas de cosecha en el orden de 50 millones de toneladas para la soja y un número similar para el maíz.

Aún bajo este escenario de incertidumbre, la Sociedad se encuentra estratégicamente posicionada y �nancieramente sólida para arbitrar la cosecha local en mercados internacionales, que por el momento se muestran cautos pero necesitados de materias primas.

4. INFORMACIÓN ADICIONAL REQUERIDA POR EL ART. 60, INCISO C) DE LA LEY 26.831.

Modalidades de Remuneración del Directorio y la Política de Remuneración de los Cuadros GerencialesEl estatuto social de la Sociedad no prevé la remuneración de los miembros del Directorio ni los miembros de la Comisión Fiscalizadora.

No obstante, la remuneración del Directorio es �jada y aprobada por la Asamblea de Accionistas, teniendo en cuenta el límite establecido en el art. 261 de la Ley General de Sociedades y las normas pertinentes de la Comisión Nacional de Valores.

En cuanto a la política de remuneración de los cuadros gerenciales, la Sociedad ha establecido un esquema de remuneración compuesto por una parte �ja y una variable. La remuneración �ja está relacionada con el nivel de responsabilidad requerido para el puesto y su competitividad respecto del mercado; la remuneración variable está asociada con los objetivos �jados al comienzo del ejercicio y el grado de cumplimiento de ellos al cierre económico. La Sociedad no tiene establecido planes de opciones para su personal.

Toma de decisiones y Control internoEl órgano de gobierno de la Sociedad es la Asamblea de Accionistas en la que cada acción ordinaria clase A con�ere derecho a cinco votos y cada acción ordinaria clase B con�ere derecho a un voto. En todos los casos, para la elección de los Síndicos titulares y suplentes y los supuestos del último apartado del artículo 244 de la Ley de Sociedades Comerciales, las acciones ordinarias, inclusive las de voto múltiple, sólo tendrán derecho a un voto por cada acción.

De acuerdo al Artículo 12 del Estatuto Social de Molinos Agro, la administración de la Sociedad está a cargo de un Directorio compuesto del número de miembros que �je la asamblea entre un mínimo de tres y un máximo de once, quienes serán elegidos por el término de dos ejercicios y que se renuevan por mitades en cada uno de ellos, pudiendo designarse suplentes en igual o menor número que los titulares y por el mismo plazo a �n de llenar las vacantes que se produjeren, en el orden de su elección.

El Directorio funcionará con la mayoría de sus miembros presentes en forma física o comunicados entre sí a través

To the shareholders ofMOLINOS AGRO S.A.:

In compliance with current legal and by-law requirements, the Board of Directors of Molinos Agro S.A. (hereinafter, “Molinos Agro” or the “Company”) is pleased to submit for your consideration this Letter, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Consolidated Statement of Cash Flows, the Notes to the Consolidated Financial Statements, the Separate Financial Statements, the Notes to the Separate Financial Statements, the Auditor’s Report and the Statutory Audit Committee’s Report on the Financial Statements for the �scal year No. 5 ended March 31, 2020, and the Summary of Events required by CNV (Argentine Securities Commission) regulations as of the same date.

Molinos Agro carried about ARS 4.20 billion in pro�t before taxes (3.3% over sales revenues), an about ARS 1.25 billion income tax credit, and about ARS 2.95 billion net pro�t, thus showing the good performance of its exports of grains and added-value products from oil seed crushing.

1. MACROECONOMIC CONTEXT.

In 2019, the global economy experienced the lowest growth in the decade (only 2.9%), below IMF initial expectations. This decline was the result of lengthy trade disputes and the unexpected negative performance of some emerging economies, particularly India, but also Mexico and South Africa.

In turn, the sporadic favorable news on US-China trade negotiations and the reduced fear that the United Kingdom may leave the European Union without reaching an agreement exerted a positive e�ect on growth.

In the agroeconomic context, the 2019/20 campaign (related to the 2018/19 harvest) started with excellent prospects as to grain and oils, and accounted for the second largest combined harvests at global level. The prices of the large global supply of grains �uctuated due to the twists and turns of US-China trade negotiations.

In addition, the soybean �our and vegetable protein market was severely a�ected by the outbreak of the African swine fever, especially in China and in several Southeast Asian countries. Consequently, animal-based production dropped in the a�ected regions and increased in the countries that produce and export di�erent types of meat.

In October 2019, U.S.-China Phase 1 trade deal was signed, which allowed for a partial recovery of the prices of agricultural commodities within a low price channel. The deal included China’s purchase preference for US agricultural products over products from other countries; however, negotiations with China during the rest of the

season were conducted mostly outside the Unites States.

Brazil’s sowing under unfavorable climate conditions, which improved during most part of the production cycle, allowed for the second consecutive record harvest of soybean, gathering in almost 120 million tons. The excellent condition of the reused lots of corn, bene�tted by late rains, grew by almost 20 million tons with respect to the prior cycle, reaching an unprecedented 101 million-ton production.

The Argentine macroeconomic context was highly in�uenced by the di�erent electoral instances held in 2019. After the primary elections held in August, the victory of the challenger candidate brought about increase uncertainty and foreign exchange pressures. From August until the presidential elections held in October and after the new government took o�ce, the exchange rate upward trend continued. The Argentine peso su�ered a 60% depreciation between January 1 and December 31, 2019, and reached the highest in�ation level in the past 28 years, amounting to 53.8% according to the INDEC (Argentine Institute of Statistics and Censuses). GDP fell by 2.2% with respect to the prior year, led by a decline in the manufacturing activity, trade and �nancial intermediation, but mainly o�set by a major improvement in agricultural activities.

In agricultural production, crop development was as expected almost in the entire territory. Rains, though erratic in some regions, contributed to a major recovery of soybean crop after it was a�ected in the prior season by one of the worst draughts in history. Soybean production for 2018/19 amounted to 53.3 million tons, accounting for a 52% increase or 18 million tons more with respect to the previous season hard-hit by the draught.

Corn, with its two clearly de�ned harvest dates, took advantage of the rains and temperature during the cycle. It reached an output of almost 53 million tons, up by 16 million tons with respect to the previous harvest, thus achieving a production record. Producer’s sales and local prices re�ected during most season the ups and downs of the trade con�ict that prevailed until Phase I of the deal was signed in October.

Due to the heightened international certainty and before the administration of Alberto Fernández took o�ce, producers accelerated the sales of grains from the 2018/19 season and anticipated sales from 2019/20 season in fear of a new increase in export duties. This rise was �nally con�rmed on December 14 through Presidential Decree No. 37/2019. Hence, export duties returned to the previous system; i.e., a �xed rate is levied on the index price of each product, removing the exchange rate in the equation formula. This change with respect to the prior system increased soybean and its crushing byproducts, corn and wheat, among others, by 5.7%.

Finally, during the year, the prior-year �xed rate for export duties between unprocessed grains and products derived from an industrial process such as those exported by the Company (oil, �our, shell and biodiesel) was maintained; therefore, more duties are paid per equivalent ton of

products than for unprocessed grains. This promoted the primarization of the economy and consequently the export of products with no added value, which, for soybean amounted to 10 million tons (that is, 6 million tons more than that exported the prior year).

2. BUSINESS POLICIES, STRATEGIC GUIDELINES AND PROJECTED BUSINESS POLICY

With a clear long-term strategy and the main goal of becoming an international supplier of products arising from soybean and sun�ower crushing, and export of cereals for large-scale independent customers, Molinos Agro strengthens its position as a key player in Argentina’s agricultural and export business by selling products with added value, strengthening business platforms and working hard in consolidating the productive e�ciency of the plant located in San Lorenzo, Province of Santa Fe, and in the San Benito port.

Origination and crushing.With a slight decrease in the sowed area but very good climate during crop development, soybean production amounted to 53.3 million tons. The y.o.y fall in the protein content of grain fostered the import of soybean seeds of several origins, standing at almost 4 million tons earmarked for crushing. Despite the increase in the availability of raw materials but due to the rise in unprocessed grain exports, the industrialized volume stood above the average for the past 5 seasons, slightly over 41 million tons, from which the Company participated with a crushing volume of 4.4 million tons (10.7%) with no impact on the import of raw materials.

In addition, during the year, the Company returned to sun�ower crushing (adjusting one of its production lines as described in section “Investments in San Lorenzo complex” below), which amounted to 63,000 tons and laid the foundations for growth in trading sun�ower oil and pellet. Corn, on the other hand, capitalized on every rain at the right time of its cycle, both for early and late sowing, and yielded the highest harvest in Argentine history. With slightly less than 53 million tons and the �erce competition in Brazil, exports reached the highest volume traded in Argentina (moderately over 37 million tons). With a major increase in the area sowed, wheat also hit a record at 18.5 million tons, and also capitalized on international trade opportunities for Argentina.

In this regard, Molinos Agro's active participation in the various origination channels and its speedy logistics and industrial response placed the Company, in the macroeconomic context described and with no possibility of participating in the import of raw materials and with an unfavorable tax structure for exporting high added value products, within high domestic crushing levels, slightly increasing its share in the total soybean and cereal industrialization sector, originating 6.5 million

tons (4.4 million oil seeds and 2.1 million cereals).

Industrial product trade.In the aforementioned challenging context, the Company managed to export 3 million tons of soybean �our and ratify its condition as reliable large-scale supplier, maintaining its global leadership in �our and soybean shell.

Moreover, the Company placed its production of soybean crude oil in 15 di�erent countries, in addition to catering for own and third-party plants to produce biodiesel. India became the most important destination again, concentrating 25% of the Company’s total oil production.

Cereal trade.The cereal business showed its maximum potential, combining the maximization of the use of assets with record corn and wheat harvests. Thus, the Company managed to reach a historical volume in the export of grains, and consolidated itself as the top grain Argentine exporter. It also managed to consolidate itself as a supplier for large-scale independent customers in percentages very similar to those reached in the export of soybean �our.

Thus, the Company exported 2.1 million tons of grains, the highest volume since it began operating, up by 90% with respect to the previous year. This placed the Company as the eighth largest Argentine cereal exporter.

Biodiesel.In 2019, the only export market with access was the European market. The US and Peruvian markets set import duties on Argentine biodiesel that render export to such countries economically impractical. By virtue of an agreement signed and executed with the European Commission by the end of February, a total of 1 million tons were placed in the EU market, distributed between 8 exporters. This was the �rst year that such agreement was performed by virtue of which access to the European Union was granted without being subject to anti-subsidy and anti-dumping duties.

As to the local market, the total volume remained unchanged as compared to the previous period. However, the allocation of quotas to medium-sized companies was reduced since the Department of Energy assigned larger volumes to other companies which �led an appeal for protection of constitutional rights claiming a larger quota based on their sales history.

Local market.In a year characterized by uncertainty and instability with limited access to �nancing, the Company continued concentrating transactions in reliable customers, controlling collection terms and margins. To such end, the Company focused on credit analysis, collection management and, aimed at minimizing the impact of depreciation, the businesses stated in US dollars were drastically increased.

Solid volumes were similar to those reached the precious year (also sun�ower pellets, from which 85% were traded on the local market), whereas liquids (excluding

biodiesel) rose by about 25% with respect to the previous year. In addition to soybean crude oil, the Company sold soybean crude oil and sun�ower crude oil.

Investments in the San Lorenzo complexDuring this year, the complex was used to its maximum, mainly due to the investments made from 2016 to 2018, hitting an unprecedented record: 6.5 million tons between soybean and sun�ower crushing, and the exports of corn and wheat.

The year was also marked by the changes in crushing line No. 1, the oldest in the complex, that was refurbished to crush sun�ower. This crushing was successfully carried out between December 2019 and March 2020, reaching the expected quality and productivity levels.

Thus, in the 2019/2020 season, the plant received four types of grains, and crushed soybean and sun�ower at the same time. It also stored 9 products in the complex, which was unexpected for a plant that was born as a merely soybean company. Finally, in March 2020, the works to expand �our drying capacity were �nished, fueled mainly by the need to combat the natural decline in the protein content of soybeans, which results may be measured in the next commercial harvest.

3. PROSPECTS

The beginning of 2020 practically coincides with the outbreak of the COVID-19 pandemic.

At global level and to date, the WHO estimates that 6 million people were infected and about 400,000 people died from this outbreak. This is an unprecedented context across the world, and half of the population is adopting social lockdown policies to contain spread of the disease.

China, the country of origin of the outbreak, returned to a controlled normalcy within 5 months from the beginning of the contagious disease. However, it is unclear how they have handled the disease and the emergency, so the time it took them to contain the disease cannot be extrapolated to other countries.

Europe, the US and Brazil are the regions most a�ected by this disease, concentrating more than 70% of the con�rmed cases.

The global economy has su�ered greatly and will continue to do so. The WTO estimates that the exchange volume will be reduced between 13% and 32%, based on their most optimistic and pessimistic scenarios, respectively. Durable goods will su�er in a higher proportion than nondurable goods. Also, the WTO estimates a strong rebound in 2021 of about 24%.

The OECD estimates that the potential decline in global GDP for the present year stands at 2%, and that growth will amount to a dramatic 0.9% in 2021. The e�ects of this crisis may be comparable to the Great Depression during the 1930s.

In Argentina, many sectors cannot operate, especially SMEs that are not de�ned as essential by the Argentine government, which imposed a mandatory and preventive lockdown as from March 20.

In�ation prospects and the competitiveness of the Argentine peso will depend on the restructuring deal that the Government manages to sign with debt holders under foreign law and the e�ect of unsecured issuance to face the expenses incurred by the pandemic.

Despite the estimated 3.5% decline in GDP, according to several private consulting companies hired by the Government itself, harvest expectations for the agro-exporting sector remain at 50 million tons for soybean and a similar number for corn.

Despite this uncertainty, the Company is strategically positioned and �nancially solvent to place a good local harvest on international markets, which are currently cautious but also eager for raw materials.

4. ADDITIONAL INFORMATION REQUIRED BY SECTION 60(C) OF LAW NO. 26,831

Forms of compensation to the Board of Directors and compensation policy applicable to ManagementThe Company’s bylaws do not set forth the compensation

applicable to the members of the Board or Statutory Audit Committee.

However, compensation to the Board of Directors is established and approved by the Shareholders’ Meeting within the limit set by section 261, Argentine General Business Associations Law and the relevant CNV regulations.

As to the compensation policy applicable to management, the Company established a compensation system made up of a �xed and a variable component. Fixed compensation is related to the level of responsibility required for the position and its competitiveness with respect to the market; variable compensation is related to the goals set at the beginning of the �scal year and the degree of progress achieved as a result of their management as of year-end. The Company has no stock option plans in place for its personnel.

Decision-making and internal controlThe Company’s governance body is the Shareholders’ Meeting; each class “A” share of common stock grants the right to �ve votes and each class “B” share of common stock grants the right to one vote. In any case, when electing statutory auditors and alternate statutory auditors and when dealing with the issues described in the last part of section 244, Argentine Business Associations Law, the shares of common stock, including multiple-vote shares, will only be entitled to one vote per share.

According to section 12 of Molinos Agro’s bylaws, the Company’s management is in charge of a Board of Directors made up of a number of at least three and a maximum of twelve regular members to be �xed by the Shareholders' Meeting, who will hold their o�ces for two �scal years to be renewed by halves each �scal year. It will be possible to appoint alternate Board members in the same number and for the same term as Board members to �ll in any vacancies, in the order of their choice.

The Board of Directors will operate with most of its

members physically present or communicated through any other simultaneous communication means for sound and images, and decisions are made by a majority of votes of the attendees, including remote participants.

At present, the Board of Directors is made up of six directors and two alternate directors, who are named at the beginning of this Letter to the Shareholders.

Molinos Agro’s Audit Committee is made up by the following directors: (i) Juan Manuel Forn, (ii) Oscar Miguel Castro and (iii) Gabriel Casella, appointed as of July 3, 2019.

In addition, Molinos Agro has systems and internal procedures in place, which were designed to follow up on businesses, thus preventing and detecting departures.

The Internal Audit area depends on Molinos Agro's Chairman and reports to the Audit Committee. Its mission is to minimize the potential impact of operating risks on the achievement of the shareholders' goals and it supports the di�erent areas by implementing and optimizing several controls and procedures.

5. CORPORATE GOVERNANCE REPORT

As Exhibit I, the Company includes a Report on the Level of Compliance with the Corporate Governance Code for the �scal year ended March 31, 2020, as established by Title IV “Periodic information system” of CNV (Argentine Securities Commission) regulations (as amended in 2013) approved by CNV General Resolution 622/2013 as amended.

6. FINANCIAL POSITION

Pro�t for the yearThe Company reached a record both in industrial processing volumes and tons exported, as well as in number of sales, operating pro�t and net pro�t due to the engagement team’s professionalism, prudent risk-taking and the trust placed by shareholders that provided �nancing to the major investments made, which made it possible to reach these operating and e�ciency levels, and which were earmarked 56% of the net revenues earned over the past three years. Even though the Company hit record pro�ts, it only accounts for 3.7% of revenues, which, although reasonable for the activity, shows the need to continue focusing on e�ciency and prudent-risk management since the activity is highly sensitive to the slight changes in variables that may signi�cantly a�ect the result of operations and the possibility of making new investments to continue with the industrial activities that add value to Argentina’s agricultural production.

The Company earned about USD 2 billion, which entailed a 15% increase with respect to the prior year. This is the consequence of trading 6.6 million tons, such as cereals, with 2.1 million tons, the highest volume traded since the Company began operating. The volume of processed

soybean went up by 600,000 tons after the drought experienced last year, partly o�set by the decline in international prices of crushing byproducts.

Gross pro�t amounted to USD 96 million and accounted for 4.8% of sales for the year. This meant a USD 25 million increase with respect to the prior year, in which the gross share stood at about 4%. Pro�ts for the third quarter stood out since grains sold by producers accelerated.

EBTDA, the main indicator of the Company’s management, stood at USD 74.9 million and USD 44.8 million for the years ended March 31, 2020 and 2019, respectively. This is a drastic improvement in this indicator, which rose from 2,6% to 3.8% this year. The Company’s pro�ts from �nancial management rose by USD 10 million with respect to the previous year. Operating pro�t amounted to USD 56 million, as compared to the USD 37.8 million earned in March 31, 2019.

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› DIRECTORES TITULARES

Presidente: Luis Perez Companc (i)

Vicepresidente: Juan Manuel Forn (ii)

Pablo Luis Antunez (i)

Amancio Hipólito Oneto (i)

Oscar Miguel Castro (ii)

Gabriel Casella (ii)

› DIRECTORES SUPLENTES:

Sebastián Gallo (i)

Mariano Mazur (ii)

› SÍNDICOS TITULARES:

Juan Manuel Gonzalez Bueno

Enrique Rodriguez Castelli

Pedro Donato

› SÍNDICOS SUPLENTES:

Jorge Enrique Trossero

Julio Fernando Lota

María Elena Di Pasquo

› AUDITOR EXTERNO:

Fernando Cóccaro - Titular

Adrián Villar - Suplente

Estudio Pistrelli, Henry Martin y Asociados S.R.L.

> MIEMBROS DEL DIRECTORIO

› DIRECTORS:

Chairman: Luis Perez Companc (i)

Vice-Chairman: Juan Manuel Forn (ii)

Pablo Luis Antunez (i)

Amancio Hipólito Oneto (i)

Oscar Miguel Castro (ii)

Gabriel Casella (ii)

› ALTERNATE DIRECTORS:

Sebastián Gallo (i)

Mariano Mazur (ii)

> MEMBERS OF THE BOARD OF DIRECTORS

› STATUTORY AUDITORS:

Juan Manuel Gonzalez Bueno

Enrique Rodriguez Castelli

Pedro Donato

› ALTERNATE STATUTORY AUDITORS:

Jorge Enrique Trossero

Julio Fernando Lota

María Elena Di Pasquo

› EXTERNAL AUDITOR:

Fernando Cóccaro – External Auditor

Adrián Villar – Alternate External Auditor

Pistrelli, Henry Martin y Asociados S.R.L.

> MEMBERS OF THE STATUTORY AUDIT COMMITTEE AND EXTERNAL AUDITOR:

>MIEMBROS DE LA COMISIÓN FISCALIZADORA Y AUDITOR EXTERNO

(i) Su mandato venció el 31 de marzo de 2020. / (ii) Su mandato vence el 31 de marzo de 2021. (i) His term of o�ce ended on March 31, 2020. / (ii) His term of o�ce ends on March 31, 2021.

Los miembros de la Comisión Fiscalizadora y el Auditor Externo se desempeñarán en sus cargos por el término de un ejercicio.

The members of the Statutory Audit Committee and the External Auditor will remain in office during one fiscal year.

toneladas (10,7%) sin injerencia en la importación de materia prima.

Adicionalmente, durante el presente ejercicio la Sociedad volvió a la molienda de girasol (adaptando una de sus líneas productivas tal como se describe en el acápite Inversiones en el complejo San Lorenzo más abajo) totalizando las 63 mil toneladas y sentando las bases para seguir creciendo en la comercialización de aceite y pellet de girasol. El maíz, por otra parte, capitalizó cada lluvia en el momento indicado de su ciclo, tanto para las siembras tempranas como para las tardías, arrojando como resultado la cosecha más grande de la historia argentina. Con algo menos de 53 millones de toneladas y fuerte competencia de Brasil, la exportación alcanzó el mayor volumen comercializado por el país, siendo algo más de 37 millones de toneladas. Con un importante aumento del área sembrada, el trigo también alcanzó un récord histórico con 18,5 millones de toneladas, y nuevamente capitalizando todas las oportunidades comerciales a nivel internacional que se presentaron para el país.

En ese sentido, la activa participación en los distintos canales de originación y la agilidad de respuesta logística e industrial, permitió a la Sociedad, en el contexto macroeconómico descripto, aún sin posibilidad de participar de la importación de materia prima y con una estructura impositiva desfavorable para la exportación de productos con valor agregado, acompañar los niveles de molienda nacional, incrementando levemente su participación sobre la industrialización de soja total y cereales, logrando la originación de 6,5 millones de toneladas, 4,4 millones de oleaginosas y 2,1 millones de cereales.

Comercialización de productos industriales.En el desa�ante contexto antes descripto, la Sociedad logró exportar 3.000.000 de toneladas de harina de soja y rati�car su condición de proveedor con�able de escala relevante, sosteniéndose entre los líderes mundiales tanto de harina como de cáscara de soja.

En lo que respecta al aceite crudo de soja, la Sociedad colocó su producción en 15 diferentes países, además de proveer a plantas propias y de terceros para la producción de biodiesel. La República de la India volvió a ser el destino más importante, concentrando un 25% del total de la producción de aceite de la empresa.

Comercialización de cereales.El negocio de cereales expresó su máximo potencial, combinando la maximización del uso de los activos con cosechas de maíz y trigo en sus máximos históricos. Esto permitió alcanzar un récord en volumen de exportaciones de granos, y consolidarse entre los participantes más importantes de la exportación granaria argentina. Además, se pudo a�anzar la función de ser proveedores de clientes independientes de escala relevante en porcentajes muy similares a los alcanzados en la exportación de harina de soja.

De esta manera, la Sociedad terminó el ejercicio

exportando 2,1 millones de toneladas de granos, el mayor volumen desde el comienzo de la operación y logrando crecer un 90% respecto del año anterior. Esto consolida a la Sociedad como el 8° exportador argentino de cereales.

Biodiesel.Durante el año 2019 el único mercado de exportación con acceso fue el europeo. Los mercados de Estados Unidos y de Perú mantienen alícuotas de importación para el biodiesel argentino que hacen antieconómica la exportación a dichos destinos. La �rma y puesta en vigencia de un acuerdo con la Comisión Europea a �nes de febrero permitió colocar en dicho mercado 1 millón de toneladas distribuidas entre 8 exportadores. Este fue el primer año que se pudo llevar a cabo dicho acuerdo permitiendo ingresar a la Unión Europea sin gravamen de aranceles anti-subsidio / anti-dumping.

Respecto al mercado local, el volumen total se mantuvo sin cambios en comparación al período anterior. Sin embargo, la adjudicación de cupos a las empresas medianas disminuyó, al reasignar la Secretaría de Energía una mayor cantidad a otras empresas que presentaron sendos recursos de amparo en reclamo de un mayor cupo, en base a su historial de ventas.

Mercado Local.En un año de incertidumbre e inestabilidad y con escaso acceso al �nanciamiento, se continuó con el proceso de concentrar operaciones en clientes con�ables, manteniendo los plazos de cobro y los márgenes. Para tal �n se concentraron los esfuerzos en el análisis crediticio, en la gestión de cobranzas y, con el afán de minimizar el impacto devaluatorio, se incrementaron fuertemente los negocios nominados en dólares estadounidenses.

Los volúmenes de sólidos se mantuvieron similares al año anterior (incorporando el pellet de girasol, que se comercializó en un 85% en el mercado local), mientras que los líquidos (excluyendo el biodiesel) se incrementaron aproximadamente un 25% respecto del ejercicio anterior. Más allá del aceite crudo de soja se incorporaron ventas de aceite neutro de soja y aceite crudo de girasol.

Inversiones en el complejo San Lorenzo.Durante el presente ejercicio se desplegó todo el potencial del complejo, en gran parte producto de las inversiones realizadas en el trienio 2016/2018, marcando el récord histórico de actividad: 6,5 millones de toneladas entre molienda de soja y girasol más la exportación de maíz y trigo.

El año también fue marcado por las modi�caciones que se ejecutaron sobre la línea de molienda N° 1, la más antigua del complejo, que fue acondicionada para moler girasol, molienda que se materializó de forma exitosa entre los meses de diciembre de 2019 y marzo de 2020, alcanzando los niveles de calidad y productividad esperados.

Es así como la campaña comercial 2019/2020 la planta recibió en forma conjunta cuatro tipos de grano diferentes, moliendo soja y girasol en simultáneo, y

almacenando 9 productos distintos sobre el complejo, lo cual era impensado para una planta que nació con una concepción netamente sojera. Por último, en marzo de 2020 se terminaron las obras de ampliación de la capacidad de secado de harina, motivadas esencialmente para combatir la natural caída de la proteína que sufre el poroto de soja y cuyos resultados se podrán medir para la campaña comercial entrante.

3. PERSPECTIVAS.

El comienzo del año 2020 coincide prácticamente con la aparición de la pandemia del Covid-19.

A nivel global y hasta el día de la fecha, la Organización Mundial de la Salud (OMS) estima que hay 6 millones de personas que fueron infectadas y alrededor de 400.000 muertos a causa de la enfermedad. Un contexto inédito para el mundo entero, en el que se calcula que la mitad de la población mundial se encuentra en aislamiento social con el solo objetivo de minimizar los contagios.

China, origen de la pandemia, ha retornado a una normalidad controlada en el plazo de 5 meses desde el comienzo de la enfermedad infectocontagiosa. Sin embargo, no está del todo claro de qué manera han manejado el curso y la salida de la emergencia, lo que hace que los tiempos no sean extrapolables a otros países.

Europa, Estados Unidos y Brasil son las regiones más golpeadas por esta enfermedad, concentrando más de un 70% de los casos con�rmados.

La economía global ha sufrido notablemente y lo seguirá haciendo. La Organización Mundial del Comercio (OMC) estima que el volumen del intercambio se reducirá entre un 13% y un 32%, según sus visiones más optimistas y pesimistas, respectivamente. Los bienes durables sufrirán en mayor proporción que los no durables. De la misma manera, la OMC proyecta un fuerte rebote para el año 2021 del orden del 24%.

El organismo internacional OCDE (Organización para la Cooperación Económica y el Desarrollo) estima en 2% la posible caída del PBI mundial para el corriente año, para ubicarse en un dramático 0,9% de crecimiento durante el año 2021. Vemos entonces que los efectos de esta crisis pueden llegar a ser comparables con la Gran Depresión del año 1930.

En Argentina, muchos sectores están viendo restringida su normal operación, sobre todo las pequeñas y medianas empresas no de�nidas como esenciales por el Gobierno nacional, quien estableció un Aislamiento Social Preventivo y Obligatorio desde el día 20 de marzo.

Las perspectivas de in�ación y competitividad del peso argentino estarán signadas por el acuerdo de reestructuración que el Gobierno logre con los tenedores de deuda bajo ley extranjera y el efecto de la emisión sin respaldo para hacer frente a los gastos que está generando la pandemia.

A pesar de las proyecciones de caída del PBI del orden de 3,5% -a cargo de varias consultoras privadas contratadas por el propio Gobierno- el sector agroexportador mantiene las perspectivas de cosecha en el orden de 50 millones de toneladas para la soja y un número similar para el maíz.

Aún bajo este escenario de incertidumbre, la Sociedad se encuentra estratégicamente posicionada y �nancieramente sólida para arbitrar la cosecha local en mercados internacionales, que por el momento se muestran cautos pero necesitados de materias primas.

4. INFORMACIÓN ADICIONAL REQUERIDA POR EL ART. 60, INCISO C) DE LA LEY 26.831.

Modalidades de Remuneración del Directorio y la Política de Remuneración de los Cuadros GerencialesEl estatuto social de la Sociedad no prevé la remuneración de los miembros del Directorio ni los miembros de la Comisión Fiscalizadora.

No obstante, la remuneración del Directorio es �jada y aprobada por la Asamblea de Accionistas, teniendo en cuenta el límite establecido en el art. 261 de la Ley General de Sociedades y las normas pertinentes de la Comisión Nacional de Valores.

En cuanto a la política de remuneración de los cuadros gerenciales, la Sociedad ha establecido un esquema de remuneración compuesto por una parte �ja y una variable. La remuneración �ja está relacionada con el nivel de responsabilidad requerido para el puesto y su competitividad respecto del mercado; la remuneración variable está asociada con los objetivos �jados al comienzo del ejercicio y el grado de cumplimiento de ellos al cierre económico. La Sociedad no tiene establecido planes de opciones para su personal.

Toma de decisiones y Control internoEl órgano de gobierno de la Sociedad es la Asamblea de Accionistas en la que cada acción ordinaria clase A con�ere derecho a cinco votos y cada acción ordinaria clase B con�ere derecho a un voto. En todos los casos, para la elección de los Síndicos titulares y suplentes y los supuestos del último apartado del artículo 244 de la Ley de Sociedades Comerciales, las acciones ordinarias, inclusive las de voto múltiple, sólo tendrán derecho a un voto por cada acción.

De acuerdo al Artículo 12 del Estatuto Social de Molinos Agro, la administración de la Sociedad está a cargo de un Directorio compuesto del número de miembros que �je la asamblea entre un mínimo de tres y un máximo de once, quienes serán elegidos por el término de dos ejercicios y que se renuevan por mitades en cada uno de ellos, pudiendo designarse suplentes en igual o menor número que los titulares y por el mismo plazo a �n de llenar las vacantes que se produjeren, en el orden de su elección.

El Directorio funcionará con la mayoría de sus miembros presentes en forma física o comunicados entre sí a través

To the shareholders ofMOLINOS AGRO S.A.:

In compliance with current legal and by-law requirements, the Board of Directors of Molinos Agro S.A. (hereinafter, “Molinos Agro” or the “Company”) is pleased to submit for your consideration this Letter, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Consolidated Statement of Cash Flows, the Notes to the Consolidated Financial Statements, the Separate Financial Statements, the Notes to the Separate Financial Statements, the Auditor’s Report and the Statutory Audit Committee’s Report on the Financial Statements for the �scal year No. 5 ended March 31, 2020, and the Summary of Events required by CNV (Argentine Securities Commission) regulations as of the same date.

Molinos Agro carried about ARS 4.20 billion in pro�t before taxes (3.3% over sales revenues), an about ARS 1.25 billion income tax credit, and about ARS 2.95 billion net pro�t, thus showing the good performance of its exports of grains and added-value products from oil seed crushing.

1. MACROECONOMIC CONTEXT.

In 2019, the global economy experienced the lowest growth in the decade (only 2.9%), below IMF initial expectations. This decline was the result of lengthy trade disputes and the unexpected negative performance of some emerging economies, particularly India, but also Mexico and South Africa.

In turn, the sporadic favorable news on US-China trade negotiations and the reduced fear that the United Kingdom may leave the European Union without reaching an agreement exerted a positive e�ect on growth.

In the agroeconomic context, the 2019/20 campaign (related to the 2018/19 harvest) started with excellent prospects as to grain and oils, and accounted for the second largest combined harvests at global level. The prices of the large global supply of grains �uctuated due to the twists and turns of US-China trade negotiations.

In addition, the soybean �our and vegetable protein market was severely a�ected by the outbreak of the African swine fever, especially in China and in several Southeast Asian countries. Consequently, animal-based production dropped in the a�ected regions and increased in the countries that produce and export di�erent types of meat.

In October 2019, U.S.-China Phase 1 trade deal was signed, which allowed for a partial recovery of the prices of agricultural commodities within a low price channel. The deal included China’s purchase preference for US agricultural products over products from other countries; however, negotiations with China during the rest of the

season were conducted mostly outside the Unites States.

Brazil’s sowing under unfavorable climate conditions, which improved during most part of the production cycle, allowed for the second consecutive record harvest of soybean, gathering in almost 120 million tons. The excellent condition of the reused lots of corn, bene�tted by late rains, grew by almost 20 million tons with respect to the prior cycle, reaching an unprecedented 101 million-ton production.

The Argentine macroeconomic context was highly in�uenced by the di�erent electoral instances held in 2019. After the primary elections held in August, the victory of the challenger candidate brought about increase uncertainty and foreign exchange pressures. From August until the presidential elections held in October and after the new government took o�ce, the exchange rate upward trend continued. The Argentine peso su�ered a 60% depreciation between January 1 and December 31, 2019, and reached the highest in�ation level in the past 28 years, amounting to 53.8% according to the INDEC (Argentine Institute of Statistics and Censuses). GDP fell by 2.2% with respect to the prior year, led by a decline in the manufacturing activity, trade and �nancial intermediation, but mainly o�set by a major improvement in agricultural activities.

In agricultural production, crop development was as expected almost in the entire territory. Rains, though erratic in some regions, contributed to a major recovery of soybean crop after it was a�ected in the prior season by one of the worst draughts in history. Soybean production for 2018/19 amounted to 53.3 million tons, accounting for a 52% increase or 18 million tons more with respect to the previous season hard-hit by the draught.

Corn, with its two clearly de�ned harvest dates, took advantage of the rains and temperature during the cycle. It reached an output of almost 53 million tons, up by 16 million tons with respect to the previous harvest, thus achieving a production record. Producer’s sales and local prices re�ected during most season the ups and downs of the trade con�ict that prevailed until Phase I of the deal was signed in October.

Due to the heightened international certainty and before the administration of Alberto Fernández took o�ce, producers accelerated the sales of grains from the 2018/19 season and anticipated sales from 2019/20 season in fear of a new increase in export duties. This rise was �nally con�rmed on December 14 through Presidential Decree No. 37/2019. Hence, export duties returned to the previous system; i.e., a �xed rate is levied on the index price of each product, removing the exchange rate in the equation formula. This change with respect to the prior system increased soybean and its crushing byproducts, corn and wheat, among others, by 5.7%.

Finally, during the year, the prior-year �xed rate for export duties between unprocessed grains and products derived from an industrial process such as those exported by the Company (oil, �our, shell and biodiesel) was maintained; therefore, more duties are paid per equivalent ton of

products than for unprocessed grains. This promoted the primarization of the economy and consequently the export of products with no added value, which, for soybean amounted to 10 million tons (that is, 6 million tons more than that exported the prior year).

2. BUSINESS POLICIES, STRATEGIC GUIDELINES AND PROJECTED BUSINESS POLICY

With a clear long-term strategy and the main goal of becoming an international supplier of products arising from soybean and sun�ower crushing, and export of cereals for large-scale independent customers, Molinos Agro strengthens its position as a key player in Argentina’s agricultural and export business by selling products with added value, strengthening business platforms and working hard in consolidating the productive e�ciency of the plant located in San Lorenzo, Province of Santa Fe, and in the San Benito port.

Origination and crushing.With a slight decrease in the sowed area but very good climate during crop development, soybean production amounted to 53.3 million tons. The y.o.y fall in the protein content of grain fostered the import of soybean seeds of several origins, standing at almost 4 million tons earmarked for crushing. Despite the increase in the availability of raw materials but due to the rise in unprocessed grain exports, the industrialized volume stood above the average for the past 5 seasons, slightly over 41 million tons, from which the Company participated with a crushing volume of 4.4 million tons (10.7%) with no impact on the import of raw materials.

In addition, during the year, the Company returned to sun�ower crushing (adjusting one of its production lines as described in section “Investments in San Lorenzo complex” below), which amounted to 63,000 tons and laid the foundations for growth in trading sun�ower oil and pellet. Corn, on the other hand, capitalized on every rain at the right time of its cycle, both for early and late sowing, and yielded the highest harvest in Argentine history. With slightly less than 53 million tons and the �erce competition in Brazil, exports reached the highest volume traded in Argentina (moderately over 37 million tons). With a major increase in the area sowed, wheat also hit a record at 18.5 million tons, and also capitalized on international trade opportunities for Argentina.

In this regard, Molinos Agro's active participation in the various origination channels and its speedy logistics and industrial response placed the Company, in the macroeconomic context described and with no possibility of participating in the import of raw materials and with an unfavorable tax structure for exporting high added value products, within high domestic crushing levels, slightly increasing its share in the total soybean and cereal industrialization sector, originating 6.5 million

tons (4.4 million oil seeds and 2.1 million cereals).

Industrial product trade.In the aforementioned challenging context, the Company managed to export 3 million tons of soybean �our and ratify its condition as reliable large-scale supplier, maintaining its global leadership in �our and soybean shell.

Moreover, the Company placed its production of soybean crude oil in 15 di�erent countries, in addition to catering for own and th